Bank Indonesia caps the exchange of Foreign currencies
How much foreign currency can be carried into and out of Indonesia
Indonesia joins a growing list of nations committed to an Automatic Exchange of information (AEOI), which are joining forces to combat global tax evasion. The issue is dire, as tax fraud and unreported income is estimated at approximately 600 billion U.S dollars per year globally. There is money in the global financial system that, if accessed and used wisely, could go a long way to mop up deficits and kick start our gloomy global economy.
Indonesia is among one of the countries that have had a long history of tax evasion, where vast amounts of money are kept off shore, or investments and income within the country go unreported due to poor government management.
Indonesia is looking to shake off this negative image and reinvigorate its local economy through the implementation of the tax amnesty program, committing to the AEOI program by 2018, and one of the more recent implementations is to encourage further transparency by capping a limit on the carrying of foreign bank notes into and out of Indonesia. The limit is set at a maximum of IDR 1 000 000 (One billion Rupiah). The Bank Indonesia regulation also hopes that this will maintain the stability of the Rupiah. Any amount over the limit, after May 2008 sanctions are applied, will risk confiscation by the relevant authorities. (PBI) No.19/7/PBI/2017 tanggal 5 Mei 2017.
Authorized agencies such as a Bank or a Licensed Money Changer may transfer the foreign banknotes for its own benefit, or those of others.
A. An authorized agency such as a Money Changer or Bank may carry more than the limit if it is seeking to carrying more than set limit, as licensed by the (KUPVA) from Bank Indonesia.
B. Or, have a capital of at least Rp 2, 000, 000, 000.00 (two billion rupiahs) that meets the operational requirements stipulated by bank Indonesia.
All UKA’s trust agreement by Bank of Indonesia should be submitted one month prior to the drawing of foreign bank notes.
We believe that the new regulation will offer some stability to the Rupiah, and alongside global efforts, curb the long standing issue of tax evasion.
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Regulation: Bank Indonesia Regulation no. 19/7 / PBI / 2017 dated May 3, 2017 concerning the carrying of Foreign Banknotes Into and Outside the Indonesian Customs Area.
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